Damage limitation

One of the sadder themes of 2023 was the folding of several small independent publishers. As an author who has been caught up in one of these closures, I feel I should put on record the very real impact that this has had on me, and suggest a couple of ideas for how authors and agents might help soften the blow for others facing similar situations in the future.

I’ve been a published author for 15 years. I started in YA but moved into adult crime in 2017 when Sandstone Press published the first of my cosy crime books, The Cost of Living. This was followed by two others in 2019 and 2020, all three published in paperback, audio and e-book form. The advances were very small and sales were modest.

In 2022, I received an email from Robert Davidson, m.d. of Sandstone, informing me that he had agreed a sub-licence for the e-rights to the three books with Joffe Books. The books were rebranded as the Supermarket Mysteries and relaunched in the autumn of 2022. They did well, featuring in the "Top Twenty Cozy Mystery" sales chart on Amazon.

At the end of March 2023, aware that Joffe paid royalties quarterly, I contacted Sandstone to enquire when I might receive the first of mine, and was told that this would happen in the next pass (end of September).

On 20th July, I received an email from Jon Barton, m.d. of Vertebrate Publishing, informing me that on 18th July, Vertebrate had purchased the intellectual property and stock of Sandstone, which was now in the hands of the liquidator, McLenan Corporate. Any business prior to 18th July should be referred to McLenan.

By then a second quarterly payment had gone from Joffe to Sandstone.

I registered my interest with McLenan, and after some weeks was sent paperwork inviting me to submit a claim – but also warning that the share of assets would probably be in the region of two pence in the pound owing.

When I sought to stop any further payments going from Joffe to McLenan, I was told that the sub-licence had passed to McLenan and they would receive payments for its full term, another four years. I have queried this directly with McLenan but am still waiting for their response.

I should say that I am a member of the Society of Authors. They have given me general advice, but not legal advice. I am also agented, but the Sandstone deal was done by a previous agent at a previous agency (who were happy to back me up), and my current agent was on maternity leave when all this kicked off.

As you can imagine, the impact of this on me has been huge.

I’m sorry Sandstone and other small presses went to the wall this year. It’s a tragedy for the owners and staff of these businesses. But it is also devastating for their authors

Financially, I have lost at least £5,000 (Sandstone were entitled to 50% of royalties from the sub-licence – a sub-licence I had no say in), and whatever these e-books might earn in the next four years.

Emotionally, it has been devastating. Obviously, there was the initial shock, and I have since found out that Sandstone were financially rocky for a long time. The fact that they knew they were likely to go under, but still didn’t make efforts to pass on royalties, feels like a betrayal. As the sorry tale unfolds, each new email batters my emotions and brings me down. I’m a resilient type, but it has been difficult to pick myself up, keep writing, and try and stay on top of this issue at the same time.

Moreover, due to an unfortunate combination of circumstances, I have felt that I’m dealing with this on my own. I have had to advocate for myself in a rather complicated and depressing situation, and it has taken its toll.

Business conditions are harsh and the publishing industry is changing rapidly. When any business goes to the wall, people lose out financially. Such is life. However, I do believe there are some things that agents and authors could consider going forwards in order to minimise the damage when things go wrong:  

1. Contracts should limit the right to sub-license to third parties as much as possible.
2. Agents and authors should include a clause in any contract about the swift payment of receipts from sub-licences. The Society of Authors suggests, “Once the advance has been earned, money from the sub-licences over a certain sum [e.g. £100] should be paid to the author within [28] days of receipt”.
3. It may be within the law, but it seems unreasonable for sub-licenses to pass to a liquidator after the owner of the head licence has gone bust. It cannot be right for future earnings for an author to be swallowed up in this way. Agents should be looking at ways of protecting their clients against this.

Things are starting to look more positive. Joffe has issued a boxset for my first three books, which is a new product, so I am anticipating earnings from this. They also published book four in the series, The Missing Red Carpet Mystery, in November, and I have a contract for a fifth. I should finally start to see royalties for these books in March 2024.

Nonetheless, I will be very happy to draw a line under 2023. I’m sorry Sandstone and other small presses went to the wall this year. It’s a tragedy for the owners and staff of these businesses. But it is also devastating for their authors; and it seems that we, as ever, exist at the bottom of the publishing food chain.